PyroGenesis Secures 50% Stake in HPQ Silica Polvere: A Game-Changer in Fumed Silica Production

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If you knew that silicon is the second most abundant element in the earth's crust (behind only oxygen) and the eighth-most common element in the universe, you’d have very little reason to be concerned about it, let alone fear it.

But that would change quickly if you knew that Silicon Metal manufacturing is the largest emitter of CO2 on the planet (on a per-ton basis). That concern would only continue to grow if you knew that Silicon Metal is used to create Fumed Silica, which is used in our everyday lives through products such as cosmetics, toothpaste and powdered foods.

HPQ SILICON DISRUPTIVE TECH IS SHATTERING ALL KEY METRICS IN THE WORLD OF FUMED SILICA FROM DOLLARS TO CARBON

HPQ Silicon is on the verge of disrupting the manufacturing process of Fumed Silica and becoming the sole provider capable of satisfying the strong demand for low carbon Fumed Silica products well into the future.

How disruptive is the HPQ Silicon Process?

• Energy Consumption 93% Lower
• Greenhouse Gases 84-88% Lower
• CAPEX 93% Less
• Hydrogen Chloride Gas Complete Elimination

A REVOLUTIONARY LEAP IN FUMED SILICA PRODUCTION

HPQ Silicon announced a pivotal development in its collaboration with PyroGenesis Canada Inc. (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY). PyroGenesis, which had the right to a 10% gross sales royalty, has opted to convert this royalty into a 50% ownership stake in HPQ Polvere, HPQ’s wholly-owned subsidiary focused on the innovative Fumed Silica Reactor (FSR) project.

STRATEGIC PARTNERSHIP STRENGTHENED

"PyroGenesis’ decision to exercise its option early, as we commence the next phase of commercial validation, highlights their strong commitment to our project," said Bernard Tourillon, President, and CEO of HPQ Silicon and HPQ Silica Polvere. "This move also mitigates future financing risks and eliminates a prospective obstacle in our ongoing discussions with potential partners in the development of the fumed silica business."

With PyroGenesis’ conversion, the partnership is set to deepen, aligning both companies' interests more closely. This shift enhances the potential benefit to HPQ from the future success of HPQ Polvere and fortifies the collaborative effort to bring this innovative technology to market.

MARKET POTENTIAL AND COMPETITIVE EDGE

The fumed silica market, valued at $1.9 billion in 2023, is expected to grow at a compound annual growth rate (CAGR) of over 5.5%, reaching $3.1 billion by 2032. This growth translates to a requirement of approximately 16,000 additional tonnes of capacity annually. HPQ Polvere’s FSR technology is poised to capitalize on this expanding market, offering significant economic and environmental advantages over traditional manufacturing methods.

A PROMISING FUTURE

HPQ Polvere’s innovative approach positions it strongly against established industry giants. As the market for fumed silica continues to grow, the company's eco-friendly and cost-effective production method provides a significant competitive edge. This strategic move by PyroGenesis not only strengthens their partnership with HPQ but also underscores the immense potential of the FSR project.